WD-40 (NASDAQ:WDFC) Shares Break Above 200-Day Moving Average - Here's Why

Key Points

• WD-40 shares broke above their 200-day moving average, trading near $219.41 versus the $219.19 average, signaling improved technical momentum.
• Analyst sentiment is moderately bullish: the stock has a consensus “Moderate Buy” rating and an average price target of $305, though several firms recently downgraded their ratings to “Hold.”
• Recent quarterly results were mixed: revenue rose 8.1% year over year to $176.78 million and exceeded estimates, but EPS of $1.06 missed consensus by $0.07. The company also declared a $1.02 quarterly dividend, equivalent to a 1.9% yield.

WD-40 Company (NASDAQ:WDFC - Get Free Report) passed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $219.19 and traded as high as $219.66. WD-40 shares last traded at $219.41, with a volume of 112,366 shares trading hands.

Analyst Ratings Changes

WDFC has been the topic of several research reports. Weiss Ratings downgraded shares of WD-40 from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, September 18th. Jefferies Financial Group reissued a "hold" rating on shares of WD-40 in a research note on Friday, July 10th. Zacks Research cut shares of WD-40 from a "strong-buy" rating to a "hold" rating in a research report on Friday, September 11th. Finally, DA Davidson raised their price objective on WD-40 from $270.00 to $305.00 and gave the stock a "buy" rating in a research note on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $305.00.

WD-40 Price Performance

The stock has a market capitalization of $2.94 billion, a price-to-earnings ratio of 36.09 and a beta of 0.27. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.57 and a quick ratio of 1.85. The stock's 50 day simple moving average is $204.55 and its 200-day simple moving average is $219.19.

WD-40 (NASDAQ:WDFC - Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The specialty chemicals company reported $1.06 EPS for the quarter, missing the consensus estimate of $1.13 by ($0.07). The business had revenue of $176.78 million during the quarter, compared to the consensus estimate of $172.07 million. WD-40 had a return on equity of 30.84% and a net margin of 11.97%. The business's quarterly revenue was up 8.1% on a year-over-year basis. During the same period in the prior year, the firm earned $1.56 earnings per share. On average, analysts expect that WD-40 Company will post 6.55 EPS for the current fiscal year.

WD-40 Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Monday, October 19th will be given a dividend of $1.02 per share. The ex-dividend date of this dividend is Monday, October 19th. This represents a $4.08 dividend on an annualized basis and a yield of 1.9%. WD-40's dividend payout ratio is 67.11%.

Insider Activity at WD-40

In other news, insider Patricia Olsem sold 300 shares of the company's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $233.73, for a total value of $70,119.00. Following the transaction, the insider owned 4,774 shares of the company's stock, valued at approximately $1,115,827.02. This represents a 5.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.78% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. ProShare Advisors LLC raised its position in WD-40 by 36.8% in the 3rd quarter. ProShare Advisors LLC now owns 43,370 shares of the specialty chemicals company's stock valued at $8,759,000 after buying an additional 11,674 shares during the last quarter. Laurel Wealth Advisors LLC purchased a new stake in shares of WD-40 during the third quarter worth about $136,000. Sterling Capital Management LLC grew its holdings in shares of WD-40 by 841.7% during the 3rd quarter. Sterling Capital Management LLC now owns 452 shares of the specialty chemicals company's stock worth $91,000 after acquiring an additional 404 shares during the period. Inspire Investing LLC grew its position in WD-40 by 13.1% during the 3rd quarter. Inspire Investing LLC now owns 3,146 shares of the specialty chemicals company's stock valued at $635,000 after purchasing an additional 364 shares during the last quarter. Finally, Vest Financial LLC boosted its holdings in WD-40 by 6.9% in the third quarter. Vest Financial LLC now owns 26,733 shares of the specialty chemicals company's stock worth $5,399,000 after purchasing an additional 1,714 shares during the last quarter. Institutional investors own 91.52% of the company's stock.

WD-40 Company Profile

WD-40 Company develops and markets maintenance, cleaning and homecare products for consumers, professional tradespeople and industrial users. Its best-known product is WD-40 Multi-Use Product, a spray designed to displace moisture, protect metal, loosen rusted parts and lubricate equipment. The company also offers WD-40 Specialist products for specific maintenance applications and the 3-IN-ONE line of lubricants.

The company's homecare and cleaning portfolio has included brands such as X-14, 2000 Flushes and Carpet Fresh.

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